Federal Reserve Watch for Oct. 7: Fed Officials Continue to See Different Paths for Inflation

BY MT Newswires | ECONOMIC | 10/07/25 03:00 PM EDT

03:00 PM EDT, 10/07/2025 (MT Newswires) -- Minneapolis Fed President Neel Kashkari (nonvoter) said that he has seen signs of stagflation in recent data and warned that any rapid rate cuts could cause a sudden jump in inflation.

Fed Governor Stephen Miran (voter) suggested that the uncertainty seen earlier in 2025 has diminished, allowing the FOMC to lower rates based on his forecast for 2026 that calls for slower inflation growth and cautioning that delaying rate cuts could negatively impact the employment side of the mandate.

Recent comments of note:

(Oct. 7) Kansas City Fed President Jeffrey Schmid (voter) said that the FOMC should remain cautious when considering further rate cuts, citing still-elevated inflation and uncertainty in the outlook.

(Oct. 2) Chicago Fed President Austan Goolsbee (voter) said that he is not certain that inflation caused by tariffs will be temporary or more persistent, telling Fox Business that recent price data are moving in the wrong direction.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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